Stocks slipped on Friday as rate hike worries rattle markets. In addition, June jobs report missed estimates for the first time in 15 months.
The Labor Department’s June jobs report showed less-than-expected payrolls increase. Nonfarm payrolls was up 209,000, against the projected 240,000. Meanwhile, unemployment rate fell to 3.6%.
Overall, S&P 500 fell 0.3% to 4,399, while NASDAQ decreased 0.1% to 13,661.
Tweet of the Day
$ALGM – $43.70
The stock shows the characteristics of a possible winner over time:
– growing earnings
– growing sales
– increasing institutional sponsorship
– rising RS
– near an new all-time highOn watch list for possible add. pic.twitter.com/Mxjk86dC72
— Chris Perruna (@cperruna) July 7, 2023
Chart of the Day
Here is the one-year chart of Chipotle Mexican Grill (CMG) as of June 21, 2023, when the stock was at $2074.
Chipotle Mexican Grill is a quick-service restaurant that features burritos, burrito bowls, tacos, and salads using high-quality ingredients which are often organic. It has a secret recipe for growing profits, by making more money per store through a combination of increasing sales per restaurant, as well as profit margins in those locations.
Chipotle Mexican Grill shares jumped up to an All-Time high after the company delivered blow-out profits. Profits shot up 84% last quarter on just a 17% increase in revenue. Digital sales rose 39% during the quarter, which improved productivity. Increased sales, higher menu prices, efficient work, and lower avocado prices led to a substantial increase in restaurant-level margins to 25.6% from 20.7% a year ago. Digital order and pickup has a higher profit margin as compared to in-store transactions. Chipotle lanes improved efficiency too.
CMG is part of the Growth Portfolio and Aggressive Growth Portfolio. The company has growth opportunities in small towns across the US and in Canada. Small towns have comparable margins and returns as the company average.
